Comments on: RESP – My Suggestion For A Better RESP Program http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/ Investing and Personal Finance Sat, 31 Jul 2010 15:45:55 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Don Proteau http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-74248 Don Proteau Thu, 03 Jun 2010 18:00:16 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-74248 I agree completely with your comments on the disfuctional rules and administrative complexity of RESP's. I am a CFP and an RESP owner and find the amount of time spent on RESP's far exceeds (dollar for dollar) any other aspect of my pratise. I concur with replacing the RESP plan with a simpler TFSA (minor) plan. I also agree with allocating current RESP grants to current students. Perhaps some industry lobbying is in order! I agree completely with your comments on the disfuctional rules and administrative complexity of RESP’s. I am a CFP and an RESP owner and find the amount of time spent on RESP’s far exceeds (dollar for dollar) any other aspect of my pratise. I concur with replacing the RESP plan with a simpler TFSA (minor) plan. I also agree with allocating current RESP grants to current students. Perhaps some industry lobbying is in order!

]]> By: Four Pillars http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-13394 Four Pillars Thu, 16 Apr 2009 21:48:09 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-13394 Irina - the pooled plans are a ripoff. RESPs are only taxed once. Irina – the pooled plans are a ripoff. RESPs are only taxed once.

]]> By: Irina http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-13371 Irina Thu, 16 Apr 2009 16:15:19 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-13371 I think RESP money should be taxed just once when you withdrawing, like RRSP. Not twice. And those enrollement fees are rediculouse. If your child is not attending 4 year program he will not get all of them back. My enrollement fees are $3600 and if my child choose to attend 2 year program $2200 will go to the toilet. Money that I was working wery hard to earn, paid on them taxes and at the end she even will not get it. My mistake was that I trust representetive who was missliding and when I found out it was to lake. I think RESP money should be taxed just once when you withdrawing, like RRSP. Not twice. And those enrollement fees are rediculouse.
If your child is not attending 4 year program he will not get all of them back.
My enrollement fees are $3600 and if my child choose to attend 2 year program $2200 will go to the toilet. Money that I was working wery hard to earn, paid on them taxes and at the end she even will not get it.
My mistake was that I trust representetive who was missliding and when I found out it was to lake.

]]> By: FourPillars http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-2419 FourPillars Fri, 07 Dec 2007 15:25:16 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-2419 This paper (from 2004) discusses the problems of most of the CESG grants going towards higher income families which was not the stated purpose of the program. www.econ.ubc.ca/discpapers/dp0403.pdf A similar study done by the CD Howe institute in 2002 http://goliath.ecnext.com/coms2/gi_0199-998445/Tax-preferences-for-education-saving.html This paper (from 2004) discusses the problems of most of the CESG grants going towards higher income families which was not the stated purpose of the program.

http://www.econ.ubc.ca/discpapers/dp0403.pdf

A similar study done by the CD Howe institute in 2002

http://goliath.ecnext.com/coms2/gi_0199-998445/Tax-preferences-for-education-saving.html

]]> By: Mike's Wife http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-2418 Mike's Wife Fri, 07 Dec 2007 15:00:07 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-2418 In response to giving the money directly to the students when they enter school, I prefer the current method or the every child gets something set up idea. For those lower income families, every dollar added early will be able to earn that much more within the fund and that could offer broader choices. In response to giving the money directly to the students when they enter school, I prefer the current method or the every child gets something set up idea. For those lower income families, every dollar added early will be able to earn that much more within the fund and that could offer broader choices.

]]> By: FourPillars http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-2417 FourPillars Fri, 07 Dec 2007 12:17:55 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-2417 Hi Traciatim. Actually in my suggested plan there is no tax rebate for the contribution - I'll clarify that in the post. I didn't say the current system was geared toward higher income people but rather that they tend to benefit more because they can save money more easily. This is based on a number of newspaper articles I've read where they looked at the average income of people who get CESG contributions. Apparently families in lower income ranges do not get many CESG grants. Mike Hi Traciatim.

Actually in my suggested plan there is no tax rebate for the contribution – I’ll clarify that in the post.

I didn’t say the current system was geared toward higher income people but rather that they tend to benefit more because they can save money more easily. This is based on a number of newspaper articles I’ve read where they looked at the average income of people who get CESG contributions. Apparently families in lower income ranges do not get many CESG grants.

Mike

]]> By: Traciatim http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/comment-page-1/#comment-2416 Traciatim Fri, 07 Dec 2007 12:01:39 +0000 http://www.moneysmartsblog.com/resp-my-suggestion-for-a-better-resp-program/#comment-2416 Could you explain how the current system is geared toward higher income folks and if it was based on income tax it would not be? If someone making 60K in ontario were to make a contribution of $2000 they would get 623 back from the gov't making the total cost to them of1377. If someone scrapes by and does the same thing with a 20K salary they would get back 431 costing them 1569, or $192 more. Currently both would put 2000 away for a cost of 2000 and get a 400 bonus. Isn't that more fair? Could you explain how the current system is geared toward higher income folks and if it was based on income tax it would not be?

If someone making 60K in ontario were to make a contribution of $2000 they would get 623 back from the gov’t making the total cost to them of1377. If someone scrapes by and does the same thing with a 20K salary they would get back 431 costing them 1569, or $192 more.

Currently both would put 2000 away for a cost of 2000 and get a 400 bonus. Isn’t that more fair?

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